Pm Chpt13 Leadership


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Pm Chpt13 Leadership

  1. 1. Leadership 13
  2. 2. Leadership <ul><ul><li>Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. </li></ul></ul><ul><ul><li>Effective leadership increases the firm’s ability to meet new challenges. </li></ul></ul><ul><ul><li>Leader : The person exerting the influence. </li></ul></ul><ul><ul><ul><li>Personal Leadership Style: the ways leaders choose to influence others. </li></ul></ul></ul><ul><ul><ul><ul><li>Some leaders delegate and support subordinates, others are very authoritarian. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Managers at all levels have their own leadership style. </li></ul></ul></ul></ul>
  3. 3. <ul><li>Leaders are people who are able to influence others and who possess managerial authority. </li></ul>
  4. 4. Leadership Across Cultures <ul><li>Leadership styles may vary over different cultures. </li></ul><ul><ul><li>European managers tend to be more people-oriented than American or Japanese managers. </li></ul></ul><ul><ul><ul><li>Japanese culture is very collective oriented, while American focuses more on profitability. </li></ul></ul></ul><ul><ul><li>Time horizons also are affected by cultures. </li></ul></ul><ul><ul><ul><li>U.S. firms often focus on short-run efforts. </li></ul></ul></ul><ul><ul><ul><li>Japanese firms take a longer-term outlook. </li></ul></ul></ul>
  5. 5. Sources of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Enable managers to be leaders & influence subordinates to achieve goals
  6. 6. Sources of Power <ul><li>Used to affect other’s behavior and get them to act in given ways. </li></ul><ul><ul><li>Legitimate Power : manager’s authority resulting by their management position in the firm. </li></ul></ul><ul><ul><li>Reward Power : based on the manager’s ability to give or withhold rewards. </li></ul></ul>
  7. 7. Sources of Power <ul><ul><li>Coercive Power : based in ability to punish others. </li></ul></ul><ul><ul><li>Expert Power : based on special skills of leader. </li></ul></ul><ul><ul><li>Referent Power : results from personal characteristics of the leader which earn worker’s respect, loyalty and admiration. </li></ul></ul>
  8. 8. Empowerment <ul><li>Process of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers: </li></ul><ul><li>Get workers involved in the decisions . </li></ul>
  9. 9. The Styles of Leadership <ul><li>Autocratic style of leadership </li></ul><ul><li>Democratic style of leadership </li></ul><ul><li>Laissez-faire style of leadership </li></ul>
  10. 10. <ul><li>Autocratic style of leadership : The term used to describe a leader who centralizes authority, dictates work method, makes unilateral decisions, and limits employee participation. </li></ul>
  11. 11. <ul><li>Democratic style of leadership: </li></ul><ul><li>The term used to describe a leader who involves employees in decision making delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees. </li></ul><ul><li>This style can be further classified in two ways: consultative and participative </li></ul>
  12. 12. <ul><li>Laissez-faire style of leadership: </li></ul><ul><li>The term used to describe a leader who gives employees complete freedom to make decisions and to decide on work method. </li></ul>
  13. 13. Leadership Models <ul><ul><li>Trait Model: sought to identify personal characteristics responsible for effective leadership. </li></ul></ul><ul><ul><li>Ralph Stogdill, one of the leading authorities in this field has stated that a leader is a person who has got </li></ul></ul><ul><ul><li>A strong drive for responsibility and task completion </li></ul></ul><ul><ul><li>Vigor and persistence </li></ul></ul><ul><ul><li>Venturesome </li></ul></ul><ul><ul><li>Drive to exercise initiative in social situations </li></ul></ul><ul><ul><li>Self confidence and a sense of personal identity </li></ul></ul><ul><ul><li>Readiness to absorb interpersonal stress </li></ul></ul><ul><ul><li>Willingness tolerate frustration and delay </li></ul></ul><ul><ul><li>Willingness to accept consequences of decision and action </li></ul></ul>
  14. 14. <ul><ul><li>Research shows that traits do appear to be connected to effective leadership. </li></ul></ul><ul><ul><ul><li>Many “traits” are the result of skills and knowledge. </li></ul></ul></ul><ul><ul><ul><li>Not all effective leaders possess all these traits. </li></ul></ul></ul>
  15. 15. Great Man Theory <ul><li>Major changes in the history of an organization or society as the result of innovative efforts of a few superior individuals, the giants of their time </li></ul>
  16. 16. Likerts Four Systems Theory <ul><li>1961, Rensis Likert- Univ of Michigan </li></ul><ul><li>Identified and labeled these styles as follows </li></ul><ul><li>System 1: Exploitative Authoritative- Attempts to exploit subordinates </li></ul><ul><li>System 2:Benevolent Authoritative-Authoritarian but paternalistic in nature </li></ul><ul><li>System 3: Participative-Consultative- Requests and receives inputs from subordinates </li></ul><ul><li>System 4: Participative-Democratic- Decisions are made by consensus and majority based on total participation </li></ul>
  17. 17. Two Dimensions of Leader Behaviors <ul><li>Ohio state university’s research: </li></ul><ul><li>Initiating structure: the extent to which a leader defines and structures his or her role and the roles of employees to attain goals. </li></ul><ul><li>Consideration: the extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas, and regard for their feelings. </li></ul>
  18. 18. Consideration & Initiating Structure Consideration Initiating Structure Is friendly, approachable Do little things to make it fun to be a member of group Give advance notice of changes Willing to make changes Treats group members as equals Tries out ideas in the group Lets group members know what is expected Assigns workers to tasks Schedules work to be done Maintains standards of performance Rate manager from 1 (never does) to 5 (always does)
  19. 19. <ul><li>The Managerial Grid: </li></ul><ul><li>Employee oriented: leaders emphasize interpersonal relations, take a personal interest in the needs of employees, and accept individual difference. </li></ul><ul><li>Production oriented : leaders emphasize the technical or task aspects of a job, are concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals. </li></ul>
  20. 20. 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Concern for production Concern for people The Managerial Grid 1,9 country club management 1,1 impoverished management 9,1 task management 9,9 team management 5,5 middle of the road management
  21. 21. Contingency Theories of Leadership <ul><li>Fiedler model </li></ul><ul><li>Path-goal theory </li></ul><ul><li>Situational leadership </li></ul>
  22. 22. <ul><li>LPC(least-preferred coworker questionnaire) </li></ul><ul><li>This is a questionnaire that measures whether a person is task or relationship oriented. </li></ul><ul><li>Three situational factors </li></ul><ul><li>Matching the leader’s style with the situations </li></ul>
  23. 23. Contingency Models <ul><li>Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. </li></ul><ul><ul><li>Leader style : the enduring, characteristic approach to leadership a manager uses. </li></ul></ul><ul><ul><ul><li>Relationship-oriented : concerned with developing good relations with workers. </li></ul></ul></ul><ul><ul><ul><li>Task-oriented : concerned that workers perform so the job gets done. </li></ul></ul></ul>
  24. 24. Fiedler’s Model <ul><ul><li>Situation characteristic : how favorable a given situation is for leading to occur. </li></ul></ul><ul><ul><ul><li>Leader-member relations : determines how much workers like and trust their leader. </li></ul></ul></ul><ul><ul><ul><li>Task structure : extent to which workers tasks are clear-cut. </li></ul></ul></ul><ul><ul><ul><ul><li>Clear issues make a situation favorable for leadership. </li></ul></ul></ul></ul><ul><ul><ul><li>Position Power : amount of legitimate, reward, & coercive power a leader has due to their position. </li></ul></ul></ul><ul><ul><ul><ul><li>When positional power is strong, leadership opportunity becomes more favorable. </li></ul></ul></ul></ul>
  25. 25. Fiedler’s Contingency Model GOOD POOR HIGH LO W HIGH LOW S W S W S W S W Leader- Member Relations Task Structure Position Power Kinds of Leadership Situations Very Favorable Very Unfavorable I II III IV V VI VII VIII 1 Relationship-oriented managers most effective in IV, V, VI, VII. Task-oriented managers most effective in I, II, III or VIII.
  26. 26. House’s Path-Goal Model <ul><ul><li>Model suggests that effective leaders motivate workers to achieve by: </li></ul></ul><ul><ul><ul><li>1) Clearly identifying the outcomes workers are trying to achieve. </li></ul></ul></ul><ul><ul><ul><li>2) Reward workers for high-performance and attainment. </li></ul></ul></ul><ul><ul><ul><li>3) Clarifying the paths to the attainment of the goals. </li></ul></ul></ul><ul><ul><ul><li>Path-Goal is a contingency model since it proposes the steps managers should take to motivate their workers. </li></ul></ul></ul>
  27. 27. Path-goal Theory <ul><li>Leader behavior </li></ul><ul><li>Directive </li></ul><ul><li>Supportive </li></ul><ul><li>Participative </li></ul><ul><li>Achievement oriented </li></ul><ul><li>Outcomes </li></ul><ul><li>Performance </li></ul><ul><li>Satisfaction </li></ul><ul><li>Environmental contingency factors </li></ul><ul><li>Task structure </li></ul><ul><li>Formal authority system </li></ul><ul><li>Work group </li></ul><ul><li>Employee contingency factors </li></ul><ul><li>Locus of control </li></ul><ul><li>Experience </li></ul><ul><li>Perceived ability </li></ul>
  28. 28. Situational Leadership Model S1: high task and low relationship S2: high task and high relationship S3: high relationship and low task S4: low relationship and low task Readiness refers to the extend which people have the ability and the willingness to accomplish a specific task High Relationship behavior Task behavior High Low R4 R3 R2 R1 Able and willing Able and unwilling Unable and willing Unable and unwilling High Low Moderate Follower readiness S4 S1 S2 S3 Telling Selling Participating Delegating
  29. 29. Leader-Substitute Model <ul><ul><li>Leadership substitute: acts in the place of a leader and makes leadership unnecessary. Possible substitutes can be found: </li></ul></ul><ul><ul><ul><li>Characteristics of Subordinates: their skills, experience, motivation. </li></ul></ul></ul><ul><ul><ul><li>Characteristics of context: the extent to which work is interesting and fun. </li></ul></ul></ul><ul><ul><ul><li>Worker empowerment or Self-managed work teams reduce leadership needs. </li></ul></ul></ul><ul><ul><li>Managers need to be aware that they do not always need to directly exert influence over workers. </li></ul></ul>
  30. 30. Transformational Leadership <ul><ul><li>Started with Von Pierre, CEO of Siemens, and allows dramatic improvements in management effectiveness. </li></ul></ul><ul><ul><li>Transformational managers: </li></ul></ul><ul><ul><ul><li>Make subordinates aware of how important their jobs are by providing feedback to the worker. </li></ul></ul></ul><ul><ul><ul><li>Make subordinates aware of their own need for personal growth and development. </li></ul></ul></ul><ul><ul><ul><ul><li>Empowerment of workers, added training help. </li></ul></ul></ul></ul><ul><ul><ul><li>Motivate workers to work for the good of the organization , not just themselves. </li></ul></ul></ul>
  31. 31. Transformational Leaders <ul><ul><li>Transformational leaders are charismatic and have a vision of how good things can be. </li></ul></ul><ul><ul><li>Transformational leaders openly share information with workers. </li></ul></ul><ul><ul><li>Transformational leaders engage in development of workers . </li></ul></ul>
  32. 32. Transactional Leadership <ul><li>Involves managers using the reward and coercive power to encourage high performance. </li></ul><ul><li>Managers who push subordinates to change but do not seem to change themselves are transactional. </li></ul><ul><li>The transactional manager does not have the “vision” of the Transformational leader. </li></ul>
  33. 33. Gender and Leadership <ul><li>The number of women managers is rising but still relatively low in top levels. </li></ul><ul><li>Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused. </li></ul><ul><ul><li>Research indicates that actually there is no gender-based difference in leadership effectiveness. </li></ul></ul><ul><ul><li>However, women are seen to be more participative than men. </li></ul></ul>